September 24, 2012

From 10.919 million tonnes in their previous forecast, South Africa's corn output forecast by traders for 2012 has increased to 11.285 million tonnes.

The average forecast of eight trading houses polled by Reuters means the market expects the government to raise slightly its final corn crop estimates for 2012 next week.

"The deliveries were very good and I don't think (the government) went all the way in the last estimate to take into account that the crop wasn't as badly damaged as the previous estimates had stated," a trader said.

Late-season drought in February and March had previously raised concerns of a lower crop. The government's Crop Estimates Committee's (CEC) last month raised its forecast to 11.192 million tonnes, citing higher-than-expected deliveries to silos.

South African Grain Information Services data showed this week that since the beginning of the 2012 marketing season in May, farmers had delivered a total of 10.226 million tonnes of corn to the silos.

The forecasts of the eight trading houses ranged between 10.995 million tonnes and 11.6 million tonnes. The CEC is due to release its final production forecast of this season's summer crops output at 1330 GMT on Wednesday (Sep 26).

Domestic corn futures are off their recent record highs, with the most active December white corn contract trading 1.67% lower at ZAR2,407 (US$290) a tonne as of 0710 GMT. The contract's record high is ZAR2,879 (US$346) a tonne.

The yellow corn contract, whose record high is ZAR2,841 (US$342) a tonne, was down 1.48% at ZAR2,400 (US$289).